Maharashtra govt to speak to corporates to streamline wp funds

The Maharashtra state government is keen on involving the corporate sector to share the responsibility of developing the state with their corporate social responsibility (wp) funds.

The state government is planning to meet India’s top 100 private companies in October and urge them to invest more in wp activities. The meeting will be scheduled in Raj Bhavan with the involvement of state governor Chennamaneni Vidyasagar Rao.

The new Companies Act, 2013 lays down every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall spend at least 2% of their average net profits. But not all companies have followed the rule in its first year.

Finance minister Sudhir Mungantiwar would meet the corporate and urge them to spend more for social development. The government wants to streamline the efforts and funds in the areas needed without duplication of projects. “We are planning to meet representatives of companies so that they can work properly for the benefit of the society. There should not be any duplication of work. They should not invest in sectors where government is already putting in efforts,” said Mungantiwar.

According to Schedule VII of The Companies Act 2013, hunger and poverty eradication, malnutrition, sanitation, employment, education, environment sustainability, conservation of natural resources, healthcare services training to promote sports, etc are listed as valid wp spending areas.

(Times of India)